Pension Transfer Questions

AFK_Matrix

Hi,

I have just been enrolled in the automatic Pension at my company. Now around 4.5 years ago I had a private pension with my old company through Scottish Widow.

So I enquired about transfering this into my new pension and was told it would cost me £250, is this the normal rate?

I am assuming though that my only options are to keep the old pension amount with Scottish Widow or transfer it and pay the fee, there is no way to get the Scottish Widow money now I assume?

jamesd

There's no real normal rate for this. Free is common, so is some charge.

You can transfer the Scottish Widows pot to just about any personal pension in the country. Hundreds of possible places it can go to. Or you can leave it where it is.

Check the investments you want to use and the costs of holding them in various places. If it's cheaper to move, move, if not, leave it where it is.

dunstonh

So I enquired about transfering this into my new pension and was told it would cost me £250, is this the normal rate?

There is no such thing as a normal rate. It is whatever the IFA or administrator wishes to charge. £250 is low and is probably a non-advised transfer (i.e. just doing the admin). That seems fair enough if it is the case.

I am assuming though that my only options are to keep the old pension amount with Scottish Widow or transfer it and pay the fee, there is no way to get the Scottish Widow money now I assume?

Another option is to use a completely different provider. Once money is in the pension then it stays within the pension (caveat being some defined benefit schemes which do give refunds if you leave early - although its rarely the right thing to do).

AFK_Matrix

Thanks for the information guys. Will have to have a sit down and look at what to do then.

JoeCrystal

Just to double check, the company pension is not NEST right? NEST got a problem that it does not allow transfer out.

Cheers,
Joe